On September 24, the Pakistani National Customs Commission announced an anti-dumping ruling on ammonia originating in China, and decided to impose a temporary anti-dumping duty of 21.64%, which came into effect immediately, for a period of four months.
Source: China Trade Relief Information Network "Pakistan imposes anti-dumping duty on China-led uranium ammonia"
Speaking of Pakistan, everyone is used to call it "Barthe", thinking that we both have a relationship.
Recently, there is a surprising news-I saw from China Economic Net in late September that Pakistan's National Customs Commission announced as early as September 17th that it would impose a temporary anti-dumping duty of 21.64% on cephalexin exported by us, which will take effect from that day and last for four months.
As soon as this happened, many people wondered: how did even the "Iron Brothers" handle our drugs?
Find out what this drug is first. Cephalexin is either a sophisticated medicine, or a common white capsule on pharmacy shelves. It is especially effective in treating skin infections, sore throats and urinary tract infections. Pakistani people often can't do without it for daily medical treatment.
According to the data of China Trade Remedy Information Network, Pakistan uses 480 tons of raw materials for this drug a year, of which 80% are shipped from pharmaceutical factories in Zhejiang and Shandong, China.
Why is our medicine so popular? The price is real-the FOB price is almost US $24 per kilogram, which is a full US $8 cheaper than the price of local pharmaceutical factories in Pakistan. Such a big price difference, local small pharmaceutical factories simply can't bear it.
The reason for this tax increase is a complaint filed by a local pharmaceutical company called Pharmagen Limited in Pakistan. In March of this year, they went to the Pakistani Customs Committee, saying that Chinese medicines were too cheap and destroyed the local market. In May, Pakistan officially launched an investigation, and the preliminary ruling, which took half a year to check, was completely in accordance with WTO rules, not a sudden slap on the head.
Moreover, Pakistan will hold a general election next year. Now protecting local industries and helping pharmaceutical companies keep jobs are also the keys to win votes. After all, the "benefits" that ordinary people can see are more important than anything else.
For pharmaceutical companies in our country, this 21.64% tax plus, the original $ 26 shore price directly increased to $ 29, and profits were basically zero.
Shandong has a household pharmaceutical company just sent Pakistan ten containers of goods, now calculated, this batch of goods not only won't make money, but also have to lose money, the manufacturer is sad that workers' wages can not be sent out soon.
Most affected are the Pakistani people. The drug price will definitely rise, and for the most common 0.25g x 10 capsules, the retail price is expected to rise to $0.35.
Don't think this money is small. The average daily salary of Pakistani people is only $7. The extra money spent is not a decimal for ordinary families, especially for those who need to take medicine for a long time. The burden will be heavy.
Interestingly, Indian pharmaceutical companies have long been staring at this market. I heard that Aurobindo and Cipla in India have lowered their quotations to US $28, just waiting for our goods to be withdrawn due to tax increases, so as to take the opportunity to seize the market.
Pakistan originally wanted to increase taxes to protect local pharmaceutical factories, but the technology of local factories is old. Even if there is no Chinese goods, it may not be able to catch the market demand. In the end, it is likely that Indian goods will take advantage. This result is probably unexpected by Pakistan.
Some people say that this is "Pakistan Railway" turning against each other, but it's really not. This tax increase is only a temporary measure. It is clearly stated in the Pakistani announcement that in the next 15 days, Chinese pharmaceutical companies can apply for a hearing, and the final ruling will be made within 180 days. Maybe the tax rate will be adjusted or even cancelled.
And China-Pakistan cooperation as a whole has not been affected, we are still Pakistan's largest trading partner, China-Pakistan economic corridors have created 420,000 jobs, China has invested more than $ 32 billion, only business is business, involving their respective industrial interests, the process is still to go.
Others say that Chinese medicines are cheap by cutting corners and squeezing workers, which is even more unreliable.
Our advantage is a practical industrial chain and scale effect - the raw materials and pharmaceutical base in Hebei and Shandong can be produced from the middle body to the finished product, the production line is mostly automated equipment, the man is only responsible for monitoring, and the efficiency is several times higher than a decade ago.
According to industry data, our per capita salary in the pharmaceutical manufacturing industry is 15 to 20 percent higher than in India and Vietnam, and the cost is low because it is efficient, not otherwise.
And exported drugs must comply with international GMP standards, Pakistan's drug regulatory authorities will also strictly audit, but the quality can not go to the market.
The Chinese Pharmaceuticals and Healthcare Imports and Exports Chamber of Commerce has issued an early warning to remind relevant companies to urgently sort out export data, prepare cost evidence, and strive to clarify the situation at the hearing.
In the long run, this is also a wake up for our pharmaceutical companies: we can not always rely on the low-priced market, we must start upgrading technology early, make high-value products, or explore several markets, do not put eggs in a basket.
In fact, in international trade, this type of anti-dumping investigation is very common, even if the relationship is better, the industry competition will do so.
The final ruling four months later is hard to say, but no matter what, this is a reminder-if our pharmaceutical industry wants to go far, it is not enough to rely solely on cost advantages, but also on technology and compliance capabilities.
What do you think the outcome will be in four months and what will our pharmaceutical companies deal with?
Source: China Trade Relief Information Network "Pakistan imposes anti-dumping duty on China-led uranium ammonia"
Speaking of Pakistan, everyone is used to call it "Barthe", thinking that we both have a relationship.
Recently, there is a surprising news-I saw from China Economic Net in late September that Pakistan's National Customs Commission announced as early as September 17th that it would impose a temporary anti-dumping duty of 21.64% on cephalexin exported by us, which will take effect from that day and last for four months.
As soon as this happened, many people wondered: how did even the "Iron Brothers" handle our drugs?
Find out what this drug is first. Cephalexin is either a sophisticated medicine, or a common white capsule on pharmacy shelves. It is especially effective in treating skin infections, sore throats and urinary tract infections. Pakistani people often can't do without it for daily medical treatment.
According to the data of China Trade Remedy Information Network, Pakistan uses 480 tons of raw materials for this drug a year, of which 80% are shipped from pharmaceutical factories in Zhejiang and Shandong, China.
Why is our medicine so popular? The price is real-the FOB price is almost US $24 per kilogram, which is a full US $8 cheaper than the price of local pharmaceutical factories in Pakistan. Such a big price difference, local small pharmaceutical factories simply can't bear it.
The reason for this tax increase is a complaint filed by a local pharmaceutical company called Pharmagen Limited in Pakistan. In March of this year, they went to the Pakistani Customs Committee, saying that Chinese medicines were too cheap and destroyed the local market. In May, Pakistan officially launched an investigation, and the preliminary ruling, which took half a year to check, was completely in accordance with WTO rules, not a sudden slap on the head.
Moreover, Pakistan will hold a general election next year. Now protecting local industries and helping pharmaceutical companies keep jobs are also the keys to win votes. After all, the "benefits" that ordinary people can see are more important than anything else.
For pharmaceutical companies in our country, this 21.64% tax plus, the original $ 26 shore price directly increased to $ 29, and profits were basically zero.
Shandong has a household pharmaceutical company just sent Pakistan ten containers of goods, now calculated, this batch of goods not only won't make money, but also have to lose money, the manufacturer is sad that workers' wages can not be sent out soon.
Most affected are the Pakistani people. The drug price will definitely rise, and for the most common 0.25g x 10 capsules, the retail price is expected to rise to $0.35.
Don't think this money is small. The average daily salary of Pakistani people is only $7. The extra money spent is not a decimal for ordinary families, especially for those who need to take medicine for a long time. The burden will be heavy.
Interestingly, Indian pharmaceutical companies have long been staring at this market. I heard that Aurobindo and Cipla in India have lowered their quotations to US $28, just waiting for our goods to be withdrawn due to tax increases, so as to take the opportunity to seize the market.
Pakistan originally wanted to increase taxes to protect local pharmaceutical factories, but the technology of local factories is old. Even if there is no Chinese goods, it may not be able to catch the market demand. In the end, it is likely that Indian goods will take advantage. This result is probably unexpected by Pakistan.
Some people say that this is "Pakistan Railway" turning against each other, but it's really not. This tax increase is only a temporary measure. It is clearly stated in the Pakistani announcement that in the next 15 days, Chinese pharmaceutical companies can apply for a hearing, and the final ruling will be made within 180 days. Maybe the tax rate will be adjusted or even cancelled.
And China-Pakistan cooperation as a whole has not been affected, we are still Pakistan's largest trading partner, China-Pakistan economic corridors have created 420,000 jobs, China has invested more than $ 32 billion, only business is business, involving their respective industrial interests, the process is still to go.
Others say that Chinese medicines are cheap by cutting corners and squeezing workers, which is even more unreliable.
Our advantage is a practical industrial chain and scale effect - the raw materials and pharmaceutical base in Hebei and Shandong can be produced from the middle body to the finished product, the production line is mostly automated equipment, the man is only responsible for monitoring, and the efficiency is several times higher than a decade ago.
According to industry data, our per capita salary in the pharmaceutical manufacturing industry is 15 to 20 percent higher than in India and Vietnam, and the cost is low because it is efficient, not otherwise.
And exported drugs must comply with international GMP standards, Pakistan's drug regulatory authorities will also strictly audit, but the quality can not go to the market.
The Chinese Pharmaceuticals and Healthcare Imports and Exports Chamber of Commerce has issued an early warning to remind relevant companies to urgently sort out export data, prepare cost evidence, and strive to clarify the situation at the hearing.
In the long run, this is also a wake up for our pharmaceutical companies: we can not always rely on the low-priced market, we must start upgrading technology early, make high-value products, or explore several markets, do not put eggs in a basket.
In fact, in international trade, this type of anti-dumping investigation is very common, even if the relationship is better, the industry competition will do so.
The final ruling four months later is hard to say, but no matter what, this is a reminder-if our pharmaceutical industry wants to go far, it is not enough to rely solely on cost advantages, but also on technology and compliance capabilities.
What do you think the outcome will be in four months and what will our pharmaceutical companies deal with?